Is Cryptocurrency becoming the modern-day Pyramid Scheme?

Ever since the sudden rise of Bitcoin, cryptocurrency-mania has become an actual thing being one of the most discussed topics on social media. People have rushed into investing, looking for quick and easy profits. However, due to little to no factual information on the currency, the lack of data also makes the investors prime suspects for online scams.

There are now multiple existing cryptocurrencies, with more entering the market every day. Since it is the “currency of the internet,” it has not been void of its influences. Cryptocurrencies such as Dogecoin are based on actual popular internet memes. Along with memes, they have also been influenced by popular online celebrities.

One such personality is Elon Musk; the entrepreneur/billionaire has been one of the biggest cryptocurrency supporters. Even in his appearance on “Saturday Night Live,” a popular late-night show in the US, he made sure to promote the currency.

However, according to the Federal Agency, ever since October 2020, there has a reported loss of more than $80 million to crypto-investment scams. Out of which $2 million alone have been to online Elon Musk impersonators. 

Read More: Turkey detains dozens over alleged cryptocurrency fraud

The CEO of Tesla Inc. and SpaceX has become quite the idol for people looking to make profits through “non-traditional means”. He has gathered quite the online cult-like following.

However, with cryptocurrency being a relatively new phenomenon, there is little to no actual information available on it, with most “experts” having sketchy credibility, to say the least.

“Follow your dreams” is probably every entrepreneur’s favorite go-to line, but it suggests more of an emotional approach rather than a rational one. This very mentality is what online scammers have perfected in abusing.

• “Posed as a special crypto airdrop by Elon Musk. Promised to double invested currency if a threshold amount of Bitcoin, Ethereum, or DOGE was sent. Sent 5,000 DOGE before realizing it was a scam.”
• “I foolishly thought there was a promotional giveaway being conducted by Saturday Night Live to support Elon Musk’s debut to host the show. I went to SNLMUSK.com and sent 30,000 dogecoins that was supposed to be multiplied by 10 and returned. Please help. The transfer was sent to the following address…”
• “This was a Twitter scam with someone pretending to be Elon Musk. Used same icon and had the blue, circle checkmark verification.”
• Fake tweet looking like Elon Musk. Said, in celebration of lunch today, send 1 Bitcoin, get ten back. So I sent one valued at $53,500. I have photos of everything.”

While it is certainly important to evolve with the times, and even taking ‘leaps of faith’ can be justified to a point, we must all remember that the internet is a wild place that has yet to be tamed. 

When venturing into the dark forest, little red riding hood must not stray from the path or risk facing the wolves.